There may be downtrend continuation in case there is a break out of the price at the demand zone of $0.08, traders should be patient for the breakout confirmation at the upper supply zone or break down at lower demand zone before taking a position.
Supply Zones:$0.11, $0.13, $0.17
Demand Zones: $0.08, $0.07, $0.06
Earlier last week Cardano continued its bearish movement in its long-term outlook. The bearish movement on the daily chart has contained ADA/USD within the rectangular channel, ranging between the supply zone of $0.11 and the demand zone of $0.08.This downward movement was aided by the bearish pressure that broke the last week strong demand zone and the coin was exposed to another strong demand zone of $0.08 at which it retraced to the supply zone of $0.11.
The EMA 4-day remains below the 50-day EMA and ADAUSD remains below the 4-day EMA. Presently, on the daily chart, there are formations of more bearish candles which indicate the possibility of the downtrend continuation, in case there is a break out of the price at demand zone of $0.08. This will require strong bearish pressure from the seller. RSI is below the 40-level pointing towards the 20-level. There are possibilities for further downward movement next week.
On the 4-H chart, the price broke the supply zone of $0.11 to the downside, which led to further downward trending to the demand zone of $0.08. Currently, ADA returns to the range in its medium-term outlook. It is ranging and trading between $0.11 and $0.08 levels. Uptrend movement could be triggered in case the supply zone of $0.11 is broken.
Traders should be patient for the breakout confirmation at the upper supply zone or break down at lower demand zone to occur before taking a position.
Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.